An analysis of all the leading indicators over the past few months shows that the housing industry is waving red flags. According to statistics from government sources, new homes sales, as well as housing starts and building permits, are all exhibiting downward trends.

This has led to a lot of speculation with some people seeking a measure that can help them to cushion their businesses from any possible negative effects. The only indicator that is showing positive signs is that of pending home sales although it is also worrisome. So, what can people expect over the coming months? Various things can be learn’t from this.

One-year low

Although the statistics show that there was an increase in house sales, the building permits over the past couple of months fell to a one-year low. The 8.6% decline in house permits, as well as an 8.8 decrease in housing starts, represent a trend that has been long coming. In fact, new house sales fell for the third month in a row meaning that unless measures are taken, they are likely to continue falling over the coming month. It is something that has caused a lot of panic across the real estate industry. However, experts say that all is not gloomy because there still is hope to turn everything around.

A sluggish growth

From the indicators, one thing that can be concluded is that even if the market starts growing again, it is unlikely to pick up as fast as people would want to. For home builders, everything already shows that it is going to a rough year, and it might get worse than that.

This is likely to affect the demand for new homes because with the declining sales; many people seem to have come to a conclusion that is owning a home is not as affordable as it used to b after all. The experts can only watch this trend before commenting on the likely decrease in the demand for homes.

From these observations, it can be concluded there are factors holding people back whenever they want to buy new comes. The red flags are a result of increased financial burden among many other things. It could be a lack of decent income, a huge student loan or just a change in lifestyle that makes people turn away from buying houses. The only hope might be found in a government intervention that might trigger the much-needed change.